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(Kitco News) - Mountain Province Diamonds (TSX: MPVD) announced Monday that in Q2 2023, the Gahcho Kué diamond mine produced 1,339,196 carats (100% basis), 6% higher than the comparable quarter (Q2 2022: 1,260,899 carats).
The company said that in mid-June, a planned 5-day major plant shutdown was safely executed, adding that process equipment, which had been responsible for repeated unplanned downtime, was repaired/replaced, with strategies implemented to ensure reduced unplanned downtime going forward.
Mountain Province added that during the second quarter, 360,308 carats were sold for total proceeds of C$59.9 million (US$44.6 million), resulting in an average price of C$166 per carat (US$124 per carat).
These results compare to Q2 2022 where 586,567 carats were sold for total proceeds of C$97.0 million (US$74.5 million) at an average price per carat of C$165 per carat (US$129 per carat).
The company explained that the reduction in volume sold in Q2 2023 relative to Q2 2022 was due to the acceleration of sales into Q1 2023, where three sales were held versus the historical norm of two.
“Relative to Q2 2022, average price per carat in Q2 2023 benefitted from a coarser than average mix of goods sold, offsetting a softening in the market. We expect a finer mix of goods sold in Q3 2023,” the company said.
Importantly, according to a press release, despite a softening of the broader rough diamond market in Q2 2023, the market for smaller goods, making up the majority of Gahcho Kué goods, continues to show resilience and a more positive demand outlook.
The company noted it expects that the Gahcho Kué production will continue to attract sustained market demand.
Mountain Province Diamonds is a 49% participant with De Beers Canada in the Gahcho Kué diamond mine located in Canada's Northwest Territories. The company also controls more than 113,000 hectares of prospective mineral claims and leases surrounding the Gahcho Kué mine.
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